Section 72 of The Indian Contract Act, 1872
A person to whom money has been paid, or anything delivered, by mistake or under coercion, must repay or return it. Illustrations
- (a)A and B jointly owe 100 rupees to C, A alone pays the amount to C, and B, not knowing this fact, pays 100 rupees over again to C. C is bound to repay the amount to B.
- (b)A railway company refuses to deliver up certain goods to the consignee, except upon the payment of an illegal charge for carriage. The consignee pays the sum charged in order to obtain the goods. He is entitled to recover so much of the charge as was illegally excessive.
Summary
- Section 72 of this law sets out the duty of a person who receives money or goods by mistake or because of force.
- It requires the person who received the payment or delivery to repay the money or return the item.
- The provision covers transfers made by mistake, which means an unintentional error.
- It also covers transfers made under coercion, which means being forced or threatened.
Practical examples
FAQ
1. What happens if money is sent to the wrong bank account under Section 72 of the Indian Contract Act, 1872?
Under Section 72 of the Indian Contract Act, 1872, if money is paid to someone by mistake, that person has a legal obligation to repay it.
2. Does Section 72 of the Indian Contract Act apply to things other than money?
Yes, Section 72 of the Indian Contract Act applies to both money paid and any physical thing delivered by mistake or under coercion.
3. What does coercion mean when returning items under Section 72 of the Contract Act of 1872?
Under Section 72 of the Contract Act of 1872, coercion means using pressure, force, or threats to make someone pay money or deliver goods, and any item obtained this way must be returned.
Test yourself
Q1.Under Section 72 of the Indian Contract Act, 1872, what must a person do if they receive money by mistake?
Q2.If a person is forced to deliver an item under threats, what does Section 72 of the Indian Contract Act, 1872, require the receiver to do?
Q3.Under Section 72 of the Indian Contract Act, 1872, does the obligation to return money paid by mistake require a formal, pre-existing contract between the parties?
Q4.Under Section 72 of the Indian Contract Act, 1872, if two joint debtors owe money to a creditor, and both pay the full amount separately because they did not know the other had already paid, what is the consequence?